American Alphabet’s performance analysis after strong results and huge investments in artificial intelligence

Alphabet (NASDAL: Googl) witnessed a remarkable increase during the last Friday trading of the American Stock Exchange, supported by the announcement of positive financial results for the first quarter of 2025, in addition to the company’s confirmation of its continued investments in the field of artificial intelligence, despite the economic pressures resulting from the escalation of customs duties.

Financial performance for the first quarter

Alphabet announced a operating income of $ 30.6 billion, exceeding the market expectations, while the collected revenues recorded 90.23 billion dollars, which came in line with expectations, and capital expenditures jumped to a record level of 17.2 billion dollars, driven by the company’s strategy to invest about 75 billion dollars this year, with the aim of strengthening its infrastructure of artificial intelligence.

At the levels of the sectors, the search revenues across Google achieved a growth to 50.7 billion dollars compared to 46.16 billion dollars during the same period last year, exceeding the estimates of Wall Street of $ 50.5 billion, and cloud computing revenues increased to 12.26 billion dollars, while YouTube advertising revenues jumped to 8.93 billion dollars.

Despite the growing concerns about the potential impact of customs duties imposed by the American President, the Alphabet administration confirmed that its direct impact on the company’s activities is still limited until now, while the state of uncertainty remains cloudy on plans to spend the announced companies.

Performing arrow and technical analysis

Googl shared a 1.68% increase in the last trading session, to close at $ 161.96, up 2.68 dollars from the previous closure of $ 159.28.

During the session, the stock ranged between 161,04 and 166.10 dollars. Over a year, the arrow recorded a trading scope between 140,53 and 207.05 dollars, and the trading volume in the last session reached 56.03 million shares, compared to the average trading of three months at 35.67 million shares, indicating a noticeable increase in interest in the arrow after announcing the financial results.

In terms of financial assessments, the arrow’s profitability of P/E) is 18,1X), a relatively attractive level compared to the growth of the company’s profits. 0.5%.

Future expectations

Despite the possible challenges resulting from the global economic environment, analysts believe that the advertising environment is still strong, with no significant weak indicators until April, and they indicated that the revenues of alphabet may be between the “best for the year 2025”, despite the company’s reservation in issuing detailed expectations due to the state of ambiguity.

Investing in artificial intelligence, as well as strong growth in the sectors of research, cloud computing and digital advertisements, gives Alphabet a strong base for the continuation of positive performance in the future. Despite the recent rise, its financial evaluation remains relatively reasonable compared to the expected growth opportunities.